The spot rate is now checking the upper border of its medium term bearish channel at 1.2650 and seems to start declining. Though a puncture of these levels will release good potential and initiate a violent bullish trend.
Technical indicators provide buy-signals and approaching overbuy zone supporting the assumption of a decline. Bollinger bands have greatly tightened in recent days showing a decline in volatility and the imminence of a violent movement.
Taking into consideration the previous events the market will provide a bullish opportunity as soon as the spot rate has broken through its resistance of 1.2650 with the 1st objective at 1.2710 and then at 1.2730. A break through 1.2630 will invalidate this scenario.
The material has been provided by Instaforex Company - instaforex.com
